Three-quarters of intermediaries saw falling MPPI sales in the second half of last year, according to Paymentshield.
Of the 100 IFAs interviewed, 40 per cent attributed the drop to external market forces such as a slowdown in the housing market.
But regulation is also having an effect, with 39 per cent of advisers saying they have less time to actively sell MPPI as a result.
Paymentshield sales and marketing director Chris Traynor says: According to government targets1, 55 per cent of homeowners should have an MPPI policy, but the reality is that this target is not being met, with many consumers potentially losing out on this valuable cover. Ideally intermediaries should be able to advise their clients on this product seamlessly within the home-buying and remortgaging process regardless of whether it is their first or third home